After it was announced that the institutional crypto lender Genesis Global and the Gemini exchange were suspending withdrawals, Tether published a brief statement that it has no connection to Genesis Global or the Gemini Earn program.
“It is important at a time like this to highlight that these reserves have proved tried and true demonstrating consistent resilience during the black swan events that have characterized the market this past year.”
On May 12, at the dawn of the crypto market crash, USDT stablecoin issuer Tether briefly lost its dollar peg.
The November 16 announcement was “part of Tether’s ongoing efforts to increase transparency.” Tether has opposed demands for it to reveal the stablecoin’s backing, and it lost a lawsuit filed by the Office of the New York Attorney General to make that information public in February.
As part of the settlement to resolve said lawsuit, Tether hired BDO Italia in July to carry out monthly assessments and attestations of its reserves for open publication.
The stablecoin has been upfront about decreasing the amount of commercial paper in its reserves to none during the year.
In response to the “market turmoil” brought on by the collapse of FTX, Genesis Global recently tweeted that it was momentarily halting withdrawals and new loans. Gemini announced that it would be unable to complete client redemption requests for five days following Genesis Global’s statement.
The FTX’s downfall has caused unprecedented waves of unrest in the crypto industry, which might last over a few months.
